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TRANSCRIPT
Natural Gas Vehicle (NGV) Marketing Program
LNG-CNG-NGV Technical Conference May 22, 2013
national fuel
Rob Eck, Sales Manager (716) 857-7711
Presentation Outline National Fuel Overview NGV Market Summary
NGV Refueling Stations Target Market & Market Barriers
NGV Marketing Program Outreach & Education Plan Sales Plan & Results Regulatory Plan NGV Partnership Pilot Program
Q&A
National Fuel Gas Distribution Corp. Market Size – FY 2012
Market Segment
No. of Customers
Usage (Bcf)
NY PA Total NY PA Total
Residential 483,420 198,324 681,744 52.5 20.7 73.2
Non-Residential
33,009 16,180 49,189 43.4 22.9 66.3
Total 516,429 214,504 730,933 95.9 43.9 139.5
NGV Refueling Station Types
Time-Fill Station Fueling time usually 6-8 hours
Typical cost range of $100,000 - $1 Million
Usually recommended for Private Fleets with vehicles that return to a central location overnight
Fast-Fill Station Fueling time is usually 3-7 minutes
Typical cost range of $500,000 - $1.5 Million
Required type of station for Public Refueling
Current NGV Refueling Stations Public Access
Name Location
1. National Fuel SC West Seneca, NY
2. National Fuel SC Niagara Falls, NY
3. Waste Management West Seneca, NY
4. HPW Energy Westfield, NY
5. Cotton Well Drilling Sheridan, NY
6. Clean Energy Rush, NY
Current NGV Refueling Stations Private Access
Name Location
1. Waste Management West Seneca, NY
2. Modern Disposal Model City, NY
3. NYS Office of Parks & Recreation Niagara Falls, NY
4. NYS Dept. of Transportation 6 Locations
5. SUNY at Buffalo Amherst, NY
6. Buffalo State College Buffalo, NY
NGV Target Market – Vehicle Types
Light Duty Passenger Cars, Taxi Cars & Service Vans
Added cost of $7,000 - $14,000 vs. gasoline vehicles
Medium Duty Short Haul Delivery Trucks, Transit Buses & Shuttle Buses
Added cost of $15,000 - $20,000 vs. gasoline vehicles
Heavy Duty Transit, Shuttle & School Buses, Long Haul Tractor/Trailer
Trucks & Garbage Trucks
Added cost of $25,000 or more vs. gasoline vehicles
NGV Target Market - Fleet Types
Food/Beverage Distribution Companies
Taxi/Limousine Services
Colleges/Universities/School Districts
Contractor/Service Companies
Transit Authorities
Garbage/Refuse Companies
Local/State/Federal Government
NGV Target Market Size
----------Private Fleets > 10 Vehicles----------
Customer Type # of Companies # of Vehicles
Food Processing 65 3,619
Construction 95 2,924
Manufacturing 17 1,725
Retail/Wholesale 46 853
All Others TOTAL
53 276
2,452 11,573
Data Source: FleetSeek.com
NGV Market Barriers
Refueling Stations Limited availability/lack of infrastructure
High capital cost of Refueling Station equipment and installation
NGV’s Limited availability of OEM dedicated vehicles
Higher premium cost for NGV’s vs. gasoline/diesel vehicles
Customer concerns about driving range, reliability, maintenance, etc.
NGV Marketing Program Outreach & Education Plan
Develop marketing materials Customer brochure, content on NFG web site
Conduct training events Customer meetings, NGV refueling station tours Partner with Clean Communities of WNY
Participate in trade shows Buffalo Auto Show, CCWNY events, etc.
Investigate other O&E options Education & Training Center Develop NGV Maintenance Course
NGV Marketing Program Sales Plan
Conduct market assessment Focus on fleets > 10 vehicles, returning to a central location
Identify best customer candidates Develop prospect list, conduct sales calls
Evaluate customer economics Conduct free feasibility assessments
Partner with 3rd parties for best applications NYSERDA, NGV Refueling Station Developers, etc.
Assist customer with financing where possible. Utilize NFG NGV Pilot Program, R&D program
Document NGV performance and economics Develop case studies and testimonials
NGV Sales Results Current Significant NGV Customers
Customer # of
Vehicles Refueling Location Incremental Usage (Mcf)
Modern Disposal 45 over 5 yrs At own Private Station 48,789
Waste Management 44 over 2 yrs At own Private Station 46,971
Guard Contracting 2 At NFG Public Station 5,580
NYS Office of Parks & Recreation 10 At own Private Station 2,200
Sonwil Distribution 1
At NFG Public Station
1,388
NGV Sales Results Current Significant NGV Sales Cycles
Customer # of
Vehicles Refueling Location Incremental Usage (Mcf)
Tops Markets 200 At own Private Station 163,000
Buffalo Fuel Corp. 70 At Public Station only 105,409
Niagara Frontier Transportation
Authority (NFTA) 80 At own Private Station 35,116
Try-It Distributing 82 At own Public Station 20,437
NGV Sales Results Current R&D Demonstration Projects
EcoDual Fuel Conversion System Target: Heavy duty tractor/trailer diesel trucks In lieu of LNG, use blend of diesel and CNG Benefits: no loss of power, reduced operating cost, emissions &
noise, improved driving range Quick and inexpensive installation, short payback
NGV Forklifts Target: Industrial customers with warehouse lift trucks Replacement of propane and electric lift trucks with CNG Benefits: reduced operating cost, emissions and maintenance,
easier refueling, increased safety Added cost for station & CNG lift trucks, longer payback
NGV Marketing Program Regulatory Plan
Reduce cost of gas for NGV applications Develop customized sales rates NGV (1) - NFG owned refueling station NGV (2) - Customer owned refueling station SC-13 Transportation Rate
Develop incentives to reduce capital cost barriers with refueling stations/vehicles NGV Partnership Pilot Program
NGV Partnership Pilot Program Overview
Approved by NY PSC on November 18, 2011 Permits NFG to give customer funding to
buydown cost of NGV re-fueling station and/or vehicles, thereby lowering payback
Ensure that program costs are borne entirely by each project through future incremental transportation/sales service charges paid by the customer
Develop set of measurable deliverables to help NY PSC evaluate the effectiveness of the program
NGV Partnership Pilot Program Design
Pilot program with initial term of 3 years. Annual cap of $1 million/year, total of $3 million
Proposed typical buydowns in range of $10,000 - $200,000. Actual buydown calculated based on incremental margin from each project
Customer must sign a performance contract with term of up to 6 years. May also be required to provide security.
Requires reporting of program results and individual project performance to NYPSC
NGV Partnership Pilot Program Reporting Requirements to NY PSC
Documentation and verification of project economics
Evaluation of performance and impact of NGV’s on environment
Demonstration of the reliability of NGV’s
Development of “Best Practices”
Introduction of NGV’s to interested parties
Measurement of customer acceptance and awareness
Collection of performance data